Definition ∞ Median price calculation determines the middle value in a set of asset prices, providing a robust measure less affected by extreme outliers. Unlike an average, which can be skewed by unusually high or low prices, the median identifies the central price point when all prices are arranged in ascending or descending order. This method is particularly useful in volatile markets or when dealing with data from multiple sources, as it offers a more stable and representative price reference. It helps to mitigate the impact of manipulative bids or offers.
Context ∞ Median price calculation is often discussed in crypto news concerning decentralized oracle networks and price feeds for DeFi protocols. The use of median prices helps to prevent single-source manipulation and provides more reliable asset valuations for lending, borrowing, and liquidation mechanisms. Debates often focus on the number of data sources required and the frequency of updates to ensure both accuracy and responsiveness in rapidly changing market conditions.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
